Yell presses right buttons

DIRECTORIES group Yell has lifted its first-half dividend by 40% and promised the same for the final payout as it said continued strong cashflow justified a less conservative policy.

That means the total payment for the year will go up from 9p to 12.6p a share. Thereafter, the group promised to raise the dividend 'at least in line with earnings'.

Yell shares led the FTSE 100 risers, gaining 11p to 381p. They floated at 285p in July of last year.

Londoners are also set to benefit as Yell increases the number of Yellow Pages editions covering the capital from five to 11.

Chief executive John Condron said: 'Originally, our directories were based on telephone exchange areas which are completely irrelevant now. The new areas reflect where people live and where they shop, not what their phone number is.'

A typical splitting of a region is north London where there will now be one directory called London North and another for Enfield, on the outer fringes.

Condron admitted the re-entry into the market of BT with its Phone Book, and newcomers such as Mirror Group, had increased competition but Yell has actually managed to cut the discounts it offers to new or repeat advertisers.

Revenue rose 6% to £605m in the six months to end-September, with earnings before interest, tax, depreciation and amortisation up 10% to £206m.